Dear Sirs
We are experiencing immense difficulties with rates clearances from the Municipality of Cape Town and, despite all their promises and the introduction of an allegedly "faster" electronic system, service levels keep plummeting.
Yesterday I had a case of a property developer who has waited 3 months for a rates clearance for a sectional title scheme. We applied for the clearance long before we were ready to lodge because we were well aware of the delays at the municipality.
Since the sectional plan has been ready, and we were in all other respects ready to lodge the application for the opening of the register, our client has lost R70 000,00 per week while waiting for the rates clearance.
We had done our best through all the usual channels to expedite the issue of the clearance (the balance due to the municipality was settled - after a long delay in establishing what that was - some time ago).
Yesterday, in utter desperation and against our better judgement, our client went in to the municipality himself. Property developers are resourceful people who are not to be trifled with at the best of times. He shouted and screamed, ranted and raved, threatened to sue everyone in sight, and got his rates clearance in three hours.
According to the municipality's records, the property was registered in the name of nine different people and/or companies - none of them being the correct one. Since the property was a newly created consolidation, they did not have that on their system either. Had we continued to wait in a civilised fashion, we may never have received clearance. That clearance was applied for manually, under the old system.
The electronic system is worse: once you have logged a query electronically, you cannot switch to a manual application - but right now, the municipality are not responding to electronic follow-up queries, and they are also not responding to routine electronic applications consistently.
The staff in the rates clearance department refuse to take telephonic enquiries.
Up to the beginning of this year, the Cape Town Deeds Office, who were cognisant of the difficulties which conveyancers face in getting rates clearances from Cape Town, were prepared to authorise "B/E" lodgements, that is, lodgements without rates clearance provided the clearance was put into the lodgement cover before execution. That dispensation ceased on 1 January 2006. In any event, all that it ever amounted to was about 10 days' grace - the time which it took for the Deeds Office to examine one's deeds.
That dispensation is obviously useless where clearance application delays run into months. The public must be losing millions upon millions of rands as a result of this criminal incompetence - and despite promises, it is getting worse.
If the municipality is unable to rescue itself, then I can see only a few limited options:
- Either the Law Society must help the profession to set aside funds for a High Court Application for a declaratory order to compel the Deeds Office to register property transfers without rates clearances, or to allow registration without such clearances in cases where the conveyancer can show that more than a reasonable time has elapsed since clearance was applied for, or for a blanket order setting aside all statutory provisions requiring such clearances before transfer -
- Or funds must be set aside for the bringing of urgent High Court applications, on a routine basis, compelling the municipality to issue clearances in instances where the applicant can show undue delay and prejudice.
I would imagine that two or three of those would persuade the municipality to do better. It is, however, a pity to have come to such a pass.
Harry Friedland
Reader Comments:
Ek as akteskretaresse het sedert verlede jaar Oktober met Kaapstad Munisipaliteit probleme met 'n uitklaring. Hulle kon nie vir my die jaarlikse belastingsyfer voorsien nie,die uitklaring is na briewe aan die Stadsklerk en ander persone uiteindelik uitgereik sonder dat die korrekte syfers aan ons gegee is aangesien dit blykbaar nie tot hulle beskikking was nie en het ons kliënt maar tot die einde van die maand waarin ons die registrasie verwag het, betaal.
Ons kliënt het 5 x gegaan om sy rekening self tot einde Junie 2006 te betaal, al vyf keer het die amptenare hom weggejaag en gesê hulle werk net deur sy prokureur (wie hulle natuurlik nooit geantwoord het nie). Op registrasie gedurende Januarie 2006 tot en met vandag, het ons nog nie die jaarlikse syfer verkry nie en om die gelde aan die einde van die registrasie te kon uitbetaal, moes beide partye 'n onderneming teken dat indien daar enige gelde verskuldig is, onderneem die betrokke partye om dit te betaal.
Nou na soveel maande kry die verkoper 'n aanmaning dat indien hy nie dadelik etlike duisende rande betaal nie, hy gedagvaar word, dit nadat hy 5 x in die stoelry gesit het soos in 'n voorgeboortelike kliniek, en hy letterlik weggejaag word, word hy nou aangemaan maar, die datum van wanneer hy "agterstallig" is, is die datum van registrasie tot nou, dus die Aktekantoor het ook nog nooit die Stadsraad van die registrasie laat weet nie of die Stadsraad het dit nog net nie ingevoer nie.
Dit is nag om met die owerhede te werk maar nou ja, die Bybel sê ons stryd is teen die owerhede en die bose magte in die lug in die laaste van die dae.
I can sympathise with you. I have been waiting for an endowment fee assessment from uThukela Municipality for two months. The officials have advised that they do not know how to calculate endowment fees and are trying to find out how to do so.
Ek het my aansoek om uitklaring met die verkoper persoonlik laat aflewer by die korrekte toonbank en amptenaar by die Munisipaliteit van Kaapstad. Na vele gesukkel om 'n telefoonnommer van hul te verkry, deel hul my mee dat hul dit nie ontvang het nie. Ons kliënt neem dit vir 'n tweede keer en versoek die amptenaar om ontvangserkenning te teken, die amptenaar weier. Na weereens vele geskarrel om by 'n persoon telefonies te bereik wat darem blyk hul weet iets, word ek meegedeel dat hulle nie pos wat persoonlik afgelewer word aanvaar nie en dit net so in die snippermandjie gooi en hul anvaar alleenlik pos per faks.
Nêrens is daar 'n telefoonnommer op hul briefhoofde, faksnommer, verwysingsnommer en/of 'n skakelpersoon nie. As jy uiteindelik by die skakelbord uitkom, is die operatrise so oningelig dat sy nie weet wat se mense daar werk nie, watse departemente daar is nie en wie die Hoof-uitvoerende beampte se naam of telefoonnommer of uitbreiding is nie. Haar kennis strek sover dat sy darem seker weet sy ontvang salaris aan die einde van die maand maar blykbaar weet sy ook nie wie haar werkgewer is nie.
Regstellende aksie is nie die oplossing nie, ons land se administrasie-meganismes het ontaard in 'n nagmerie van salaristrekkers wat eintlik nie bewus is waarvoor hulle daardie salarisse en voordele kry nie solank hul dit net kry. Erens sal die Wetsgenootskap moet ingryp, en ek vertrou dat hulle genoeg "mag" sal hê om die regsberoep te probeer "red" van ondergang deur die swak sisteem want Kaapstad Munisipaliteit is nie die enigste swartskaap nie.
I am a Conveyancing Secretary in Johannesburg and completely understand the frustration caused by this lack of interest by the Council. This is a cancer that needs to be beaten otherwise it is going to have a nasty ripple effect that can only end unpleasantly.
Harry, I agree that a declaratory order or amended legislation will be welcomed by most conveyancers. To make it worth everyone's while (including the municpalities?) perhaps conveyancers should offer (for a fee of course) to bear the responsibility for ensuring due payment of what was stated in the rates assesment. This will be similar to what is happening in the case of sectional titles any way.
Amen, we have the same situation at City of Johannesburg.
I concur with Mr Friedman - it is about time the incompetence of the City of Cape Town regarding the issuing of rates clearances is dealt with for once and all. We experience the same less than uselessness from them. We had an instance where the City of Cape Town acknowledged receipt of our rates clearance payment just to be told later that the cheque "got lost".
We issued a fresh cheque and stopped the payment just to be threatend by legal action and blacklisting by the City of Cape Town because the stopped cheque was not honoured by our bankers. We advised them about their incompetence, invited them to sue us which they unfortunately declined.
WHAT ABOUT EKURHULENI METROPOLITAN MUNICIPALITY (ALBERTON SERVICES). SAME DIFFICULTIES.
Ons was tot vier maande gelede nog gelukkig by Overstrand Munisipaliteit (Hermanus) maar rompslomp en die feit dat Aansoeke vir uitklarings nou deur vier verskillende persone moet gaan (en dikwels in die proses verlore raak) voordat dit by die regte persoon kom wat die uitreiking daarvan moet hanteer (en wat soms self nie weet hoe om die werk te doen nie), het veroorsaak dat ons ook nou dieselfde onproduktiewe pad loop en benoud is oor die toekoms van goeie dienslewering aan ons kliënte.
By obtaining a Court Order to compel the Registrar of Deeds to register without a rates clearance will place tremendous pressure on Conveyancers who will have to follow up in any case to ensure the rates are paid. A better solution would be to await the clearance from the municipality and should there be an unreasonable delay to sue the municipality for damages suffered by the Developer.
We have the same situation with Buffalo City Municipality in East London. The sooner an external auditor is appointed to carry out an internal audit on all municipal rates departments the sooner things will improve.
I have considered Mr Friedman's letter with interest especially his reference to the much needed assistance of the law society. I am of the firm view that it has become time for practitioners to sanction the law society to stand up and be accounted for. I am unable to comprehend that the law society is not aware of the problem and would welcome feedback with regards to role that they intend fulfilling in resolving the problem.
I may advise practitioners that in light of this untenable situation, the CLS Property Committee recently convened a meeting of stakeholders where the grave consequences of Cape Town City clearances were highlighted by banks, planners, architects and developers. These stakeholders and the profession are scheduled to meet with the Mayor within the next few days.
I would like to know why it is that after 15 May, a client has to pay a full year's rates before we can obtain the Rates Clearance. Obtaining a Clearance in Durban is also a "nightmare" Surely we should get what we pay for - service!
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